Akron Sellers: Repair, Credit or Say No After Inspection?

You accepted an offer. You're starting to pack. Then the buyer's inspection report shows up with a list of requests. For a lot of sellers, this is the most stressful week of the whole sale. It doesn't have to be, if you know how to read the list.

Sort the list before you react

Most repair requests fall into three groups:

• Safety and major systems: roof, structure, heating and cooling, electrical, plumbing, water in the basement, mold.
• Functional items: a dripping faucet, a door that sticks, a missing outlet cover.
• Cosmetic items: scuffs, worn carpet, dated fixtures.

When I advise buyers, I tell them to keep their requests to the first group. Most good buyer's agents give the same advice. So when a list is mostly major items, the buyer is usually serious about them. When it's mostly small and cosmetic stuff, there's more room to push back.

Your three choices

Make the repair. You control who does the work and when. The downside is that you're managing a contractor while you're trying to move, and the buyer will want receipts and proof the work was done right.

Offer a credit or a lower price. The buyer handles the repair after closing, the way they want it done. This is often the cleanest option. Have the buyer check with their lender, because lenders set limits on credits, and the agreement has to be written correctly.

Say no. You're allowed to. Sometimes it's the right move, especially for cosmetic requests or when the price already reflected the house's condition. Just know the buyer may walk away.

Think about what happens if they walk

If the buyer cancels, you're back on the market, and the next buyer's inspector will likely find the same things. Once you know about a significant problem, talk with your agent about whether it needs to go on your disclosure for the next buyer. So the real question isn't only "do I want to pay for this?" It's "will the next buyer ask for the same thing?"

We went through the buyer's side of this in our post on negotiating after the inspection, and how a buyer reads the report in our post on Akron inspection reports. It helps to know what the other side is thinking.

Get your own number before you answer

A repair request often comes with a dollar figure, or with no figure at all. Either way, get your own estimate from a licensed contractor before you respond. Ballpark numbers from an inspection report or the buyer's contractor can run high or low, and the inspector isn't pricing the job. An actual quote gives you something solid to negotiate with, and it tells you whether a credit or a repair is the better deal for you.

It also helps to have a contractor look at the actual problem. "Possible roof leak" on a report can turn out to be a small flashing repair or a full roof replacement, and you want to know which one you're negotiating before you put a number in writing.

A home warranty can settle the small stuff

When I sell a property I own, I always provide the buyer a home warranty. It gives them somewhere to go if an older appliance or system quits later, and it takes a lot of the fight out of the small items. A buyer worried about a 15-year-old water heater is often satisfied knowing a warranty is in place. We explained our thinking in our post on whether a home warranty is worth it.

Akron details that matter

If you agree to repairs that need a permit, pull it through the City of Akron and get the final inspection signed off. Unpermitted work can create a bigger problem than the one you fixed, especially if the buyer's lender or appraiser asks about it. Use licensed contractors for electrical, plumbing and HVAC, and keep every invoice.

Akron also has a lot of older housing, so inspection reports here can run long. A long report on a 90-year-old house isn't unusual. What matters is what's actually on it.

Keep the deal in perspective

Before you answer, compare the cost of the request with the cost of starting over: more weeks on the market, more mortgage payments and maybe a lower price from the next buyer. Sometimes giving a little is the cheapest path to closing. Sometimes it isn't. Look at it as a business decision, not a personal one.

Whatever you decide, put it in a written response through your agent, with clear deadlines. Verbal agreements on repairs are how deals fall apart at the closing table.

If you're selling in Akron and want help with an inspection response, schedule a time with me or someone on our team at 21mike.com.

Mike Ferrante
The Mike Team at LPT Realty
www.21mike.com
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